SIGN IN SUBSCRIBE

News Update

Jio turns world’s top telco in terms of data trafficIndia takes part in 'Institutionalization of SMART Government for Improving Service Delivery' in LondonGadkari faints during campaign; Heat takes toll on his health'Sunflowers were the first ones to know' - film by FTII student selected at CannesSARFAESI Act - Award of interest on auction money at rate applicable to fixed deposits is not a correct view and rate of interest deserves to be enhanced: SC (See 'TIOLCorplaws')ST - Chit Funds - Tax was not paid under mistake of law but upon demand by tax authorities - Refund not having been filed within time was rightly rejected: HCSC asks EC to submit more info on reliability of EVMsGST - Without considering reply on merits, proper officer has held that reply is unsatisfactory and, therefore, he is left with no alternative but to create demand - Order set aside: HCGST - Cancellation of registration retrospectively - Show Cause Notice and the impugned order are bereft of any details, accordingly the same cannot be sustained: HCGST - Registration could not have been cancelled retrospectively for the period for which returns were filed and taxpayer was compliant: HCGST - Notfn 11/2017-CTR amended by 03/2022 - Work contracts executed before 18 July 2022 - Petitioners should file refund claims before respondent agitating grievance and same be examined and orders passed within 4 months: HCItaly imposes USD 10 mn fine on Amazon for unfair business practicesGST - Entire tax liability has been realised by appropriating the amount from the petitioner's bank account, therefore, Revenue interest stands fully secured - Since tax proposal was confirmed without participation of petitioner, order set aside and matter remanded: HCCaste Census is my mission, says RahulRight to Sleep - A Legal lullabyUS warns Pak of punitive sanctions against trade deal with IranI-T- Income surrendered before approaching Settlement Commission not covered u/s 115BBE, where this provision did not exist during relevant AYs: HCChinese companies decry anti-subsidy probe by EUI-T- Entire interest expenditure is allowable as deduction if loan funds is not diverted for non-income earning activities/personal purposes : ITATUK to send military aid package worth USD 619 mn to UkraineUS regulator bans non-compete agreements by employeesAir India, Nippon Airways join hands for travel between India and JapanSC grills Baba Ramdev & Balkrishna in misleading ad case
 
Cus - Project Import - TI 9801 - Ceiling of 10% of the value of the capital goods does not govern import of raw material for setting up of plant: CESTAT

By TIOL News Service

MUMBAI, SEP 13, 2017: THE Customs Tariff Item 9801 description reads -

ALL ITEMS OF MACHINERY INCLUDING PRIME MOVERS, INSTRUMENTS,APPARATUS AND APPLIANCES, CONTROL GEAR AND TRANSMISSION EQUIPMENT, AUXILIARY EQUIPMENT (INCLUDING THOSE REQUIRED FOR RESEARCH AND DEVELOPMENT PURPOSES,TESTING AND QUALITY CONTROL), AS WELL AS ALL COMPONENTS (WHETHER FINISHED OR NOT) OR RAW MATERIALS FOR THE MANUFACTURE OF THE AFORESAID ITEMS AND THEIR COMPONENTS, REQUIRED FOR THE INITIAL SETTING UP OF A UNIT, OR THE SUBSTANTIAL EXPANSION OF AN EXISTING UNIT, OF A SPECIFIED : (1) INDUSTRIAL PLANT, (2) IRRIGATION PROJECT, (3) POWER PROJECT, (4) MINING PROJECT, (5) PROJECT FOR THE EXPLORATION FOR OIL OR OTHER MINERALS, AND (6) SUCH OTHER PROJECTS AS THE CENTRAL GOVERNMENT MAY,HAVING REGARD TO THE ECONOMIC DEVELOPMENT OF THE COUNTRY NOTIFY IN THE OFFICIAL GAZETTE IN THIS BEHALF; AND SPARE PARTS, OTHER RAW MATERIALS (INCLUDING SEMI-FINISHED MATERIAL) OR CONSUMABLE STORES NOT EXCEEDING 10% OF THE VALUE OF THE GOODS SPECIFIED ABOVE PROVIDED THAT SUCH SPARE PARTS, RAW MATERIALS OR CONSUMABLE STORES ARE ESSENTIALFOR THEMAINTENANCE OF THE PLANT OR PROJECT MENTIONED IN (1) TO (6) ABOVE

Both sides are in controversy on the point whether for setting up of a new industrial plant requiring certain raw materials can be imported subject to ceiling of 10% of the value of the capital goods imported.

The Member (Judicial) writing for the Bench in a terse order observed -

"…When the Tariff item 9801 is read in respect of Project Import under chapter 98, it provides for grant of duty incentive in two different situations. The first situation is setting up of a plant and the second situation is maintenance of the plant. Appellant's case is setting up of the plant which is not governed by ceiling of 10% of the value of the capital goods. Therefore, the value of raw material imported by the appellant shall not be governed by the ceiling prescribed for the second category of the entry i.e. maintenance."

The appeal was allowed.

(See 2017-TIOL-3324-CESTAT-MUM)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST